Abstract : The paper is a reply to a criticism of the authors, proposal that housing subsidies be delivered by means of rent certificates. The critic argued that it will be difficult to enforce the provision of these certificates requiring each recipient to spend at least the face value of his certificate on housing. He also presented the traditional argument concerning the superiority of transfers in cash over transfers in kind, concluding that all transfers should be in cash. The reply presents an example in defense of the proposal. (Author)